Annual Report 2002 [PDF/1.6MB]

6. ACCRUED RETIREMENT BENEFITSThe funded and accrued status of the retirement benefit plans of the Company and its domestic subsidiaries at March 31,2002 and 2001 are summarized as follows:Millions of Yen2002 2001Thousands ofU.S. Dollars2002Retirement benefit obligation¥ (60,779)¥ (52,913)$ (456,128)Fair value of plan assets25,54326,314191,693Unfunded retirement benefit obligation(35,236)(26,599)(264,435)Unrecognized net retirement benefit obligation at transition15,09816,385113,306Unrecognized actuarial gain or loss13,6944,807102,769Net retirement benefit obligation(6,444)(5,407)(48,360)Prepaid pension costs(26)Accrued retirement benefits reflected in the consolidatedbalance sheets¥ (6,444)¥ (5,433)$ (48,360)Note: Domestic subsidiaries have adopted a allowed alternative treatment of the accounting standards for retirementbenefits for small business entities.Retirement benefit costs of the Company and its domestic subsidiaries included the following components for the years endedMarch 31, 2002 and 2001.Millions of Yen2002 2001Thousands ofU.S. Dollars2002Service cost¥ 1,653¥ 2,125$ 12,405Interest cost1,7071,90912,811Expected return on plan assets(1,339)(1,646)(10,049)Amortization of net retirement benefit obligation at transition1,1813,4718,863Actuarial losses4453,340Net periodic benefit costs3,647¥ 5,859$ 27,370Assumption used in the accounting for the retirement benefit plans for the years ended March 31, 2002 and 2001 were asfollows:Method of attributing benefit to periods of serviceDiscount rateExpected rate of return on plan assetsAmortization period for net retirement benefitAmortization period for actuarial gain or lossStraight-line method2.4% for 2002 and 3.5% for 20015.3%Principally 15 years (some domestic subsidiariescharged to income in the year ended March 31,2001)Average remaining years of service perriod of theeligible employees from the following year42